Accounting 1: Program #6 – “Intro to Debits and Credits”


With loads of businesses looking to save money by outsourcing accounting services to qualified individuals, certified public accountants can make a solid income.

Starting a CPA business from home requires relatively low overhead, but it may take a time to land the clients needed to turn a profit. You can market your services through networking, and you might consider starting your business part time until it gets off the ground.

While you can be an accountant without CPA certification, CPAs have a strong advantage over their noncertified peers. Visit the American Institute of CPAs website for information on specific state requirements.

Accounting 1
Program #6
Chapter 1,2
"Intro to Debits and Credits"

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  1. Vijay Kailash says

    Remember this to know which has a normal debit balance and which has a normal credit balance:

    “After Eating Dinner, Let’s Read Comics”

    This stands for: Assets, Expenses, Drawing, Liabilities, Revenue, and Capital.

    Everything on the left side of the comma, (After Eating Dinner) has a normal DEBIT BALANCE. Everything on the right side of the comma (Let’s Read Comics) has a normal CREDIT BALANCE.

    So, if you are looking at an expense account, just think to yourself, “After Eating Dinner…” Then you will know Eating stands for Expenses. And Eating is on the left side of the comma. So, you will know expenses has a normal debit balance – Expenses will increase with a debit and decrease with a credit.

    If you are looking at a revenue account, do the same thing.. Think to yourself.. “After Eating Dinner, Let’s READ Comics. Read stands for Revenue and is on the right side of the comma. The right side is the credit side. So, revenues have a normal credit balance – revenues will increase with a credit and decrease with a debit.

    Hope this helps! 🙂

    1. Dusan Kollar says

      great! thank you!

    2. gagan bumrah says


    3. The Atheist Conqueror says


    4. Rhonda Underwood says

      +Vijay Kailash I love this! Thank you!

    5. Jay Cent says

      Vijay Kailash k


  2. jay antonio says

    Remember debit the the giver

  3. steph21 says

    I use DEALOR to remember credits and debits DEA= DIVIDENDS, EXPENSES, ASSETS; LOR=LIABILITIES, OWNERS EQUITY, & REVENUE……also what a great professor

  4. Gazzali Maidin says

    Clarity is what makes a good lecturer. Thumbs Up.

  5. George Roberts III says

    The “DR” and “CR” abbreviations come from Latin “debere” and “credere” the past participles of “debitum” and “creditum”.

    1. luciu constantin says

      +George Roberts III cool

    2. Anna Rouse says

      I always thought it stood for “Debit Record” and “Credit Record”

  6. Jie Zhang says

    Since OE=C(Capital)-W(Withdrawals)+R(Revenue)-E(Expenses);
    So A=L+C-W+R-E;
    And therefore, A+W+E=L+C+R
    Finally, A, W, E (left side) are Dr; L, C, R(right side) are Cr.

    This is my way to memorize this principle.

    Good luck!! Folks!!LOL

    Frankly, cards are not my types…

    1. beerponglegend69 says

      Thus follows, 0=Abraham Lincoln

    2. Drew James says


  7. blackvitruvianman says

    Great instructor!!

  8. LBiggy says

    Who’s with him?

  9. francois park says

    where can I get the PPT?? if anyone knows please tell me!!

  10. Hayat Muhammad says

    Assets, expenses, losses, and the owner’s drawing account will normally have debit balances. Their balances will increase with a debit entry, and will decrease with a credit entry.

    Liabilities, revenues and sales, gains, and owner equity and stockholders’ equity accounts normally have credit balances. These accounts will see their balances increase when the account is credited. Their balances will decrease when they debited.

    i am studying CPA but i Love your teaching Method —God Bless you

  11. Xiao ZHI says

    I simply laugh when hearing all the guys saying
    debit means left,credit means right…
    But it works!!!

  12. omar faris says


  13. Mohamed Samir says

    how can i get the powerpoint files please?

  14. J. Dale Smith says

    He is a great Educator!

  15. WorldWideLingo says

    Thank you so much, you are an amazing instructor. I feel like I’m actually there in the class.

  16. Rahul K says

    I am little confused between Unearned Revenue and Revenue, from previous classes I got that whenever we sell/deliver products/services, it means that we earned revenue and should consider it as an asset, is it not same as unearned revenue? As such, should we make two entries:- Credit Unearned Revenue and Debit Account Receivable? Kindly clarify if you still check comments. Any one reply to me…

    1. Sameer Alriyashi says

      Hello. The difference is unearned revenue is for a product/service that we have not delivered/performed. That’s like you ordering a video game from me, and you give me the money now but I have not given you the game (and won’t until next week). This is a liability because I have the cash up front but have not given you the game. In this case, we debit cash, and credit unearned revenue. When I finally give you the game, the revenue becomes earned – so i’ll debit unearned revenue and credit sales revenue.

    2. Rahul K says

      I think it make sense now.. thanks for clarifying..

      In above scenario- I will first Credit by Cash A/c and Debit Account Receivable A/c and once you deliver the product, I can Debit by Asset (product) A/c and Credit Account Receivable, right??

  17. LaDy LB B says

    Hi all,
    What is the web address for Angel?

  18. Niladri Banerjee says

    Let’s understand this mathematically…

    A = L + OE
    Now let’s assume if A increases => it is recorded on the Debit side. Consider this was in Luca Pacioli’s mind who invented accounting.


    1. Can I say – A ∝ (Directly Proportional) to L
    So this means A↑ => L↑
    A↑ = Increase in A.

    If increase in A, is recorded on the debit side, now since L is on the other side of the equation (A = L + OE), an increase in L is recorded on credit side.

    2. Can I say – A ∝ (Directly Proportional) to OE
    So this means A↑ => OE↑

    If increase in A, is recorded on the debit side, now since OE is on the other side of the equation (A = L + OE), an increase in OE is recorded on credit side.

    3. Now let us understand the component of OE. OE = OC – OD + Rev – Exp
    And here components of OE is not on the accounting equation’s other side.
    We know now OE↑ is recorded on credit side.

    OE ∝ OC => OE↑ means OC↑ and hence both are recorded on credit side.
    OE ∝ 1/OD => OE↑ means OD↓ and hence increase in OD is recorded on debit side.
    OE ∝ Rev => OE↑ means Rev↑ and hence both are recorded on credit side.
    OE ∝ 1/Exp => OE↑ means Exp↓ and hence increase in Exp is recorded on debit side.


  19. NevaehBeatez says

    How old is this lecture…

  20. NevaehBeatez says

    A better way to explain debits and credits is to say that money has to come from somewhere and go somewhere else. When money is coming from within the business, it’s a debit. When it comes from outside the business, it’s a credit. When you get a loan, you record a Notes Payable as a credit because that money is coming from within the company. Then you record a debit in the Cash account because that money is now within the business.

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